RULE NO: RULE TITLE
5F-14.001: General
5F-14.002: Definitions.
5F-14.003: Grant proposals; criteria; ranking; award.
PURPOSE AND EFFECT: This proposed new rule is for the purpose of implementing the statutory requirements of Section 570.975, Florida Statutes, established by the Florida Legislature to provide funding for renewable energy matching grants for demonstration, commercialization, research, and development projects relating to bioenergy projects.
SUMMARY: The rule establishes administrative guidelines for implementing Section 570.975, Florida Statutes, including criteria for grant eligibility and allocation, grant evaluation and methods of funds approval and disbursements.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 570.957 FS.
LAW IMPLEMENTED: 570.957 FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: September 10, 2007, 10:00 a.m.
PLACE: George Eyster Auditorium, Conner Building, 3125 Conner Blvd., Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 7 days before the workshop/meeting by contacting: Tom Steckler, Deputy Director, Division of Standards, Conner Building, 3125 Conner Blvd., Suite E, Tallahassee, FL 32399-1650; Phone: (850)488-0645; Fax (850)922-8971. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Tom Steckler, Deputy Director, Division of Standards, Conner Building, 3125 Conner Blvd., Suite E, Tallahassee, FL 32399-1650; Phone: (850)488-0645; Fax (850)922-8971

THE FULL TEXT OF THE PROPOSED RULE IS:

5F-14.001 General.

This part implements the Farm to Fuel Grants Program, providing for grants for bioenergy projects.

Specific Authority 570.957 FS. Law Implemented 570.957 FS. History–New________.

5F-14.002 Definitions.

The words, terms and phrases used in this Chapter, unless otherwise indicated, shall have the meaning set forth in Section 570.957, F.S. In addition, when used in this chapter, the following words, phrases, or terms shall have the following meanings:

(1) “Biomass” means: Organic matter available on a renewable or recurring basis. Biomass includes, but is not limited to, crops and trees, agricultural food and feed crop residues, wood and wood wastes and residues, aquatic plants, grasses, animal wastes and residues, and other organic waste materials and residues.

(2) “Matching Funds or Other In-Kind Contributions” means:

(a) Actual cash outlays contributed, including, but not limited to, cash outlays for wages, rental expenses, travel expenses, indirect costs, purchases of equipment, material and supplies, and construction costs, as a direct benefit to the project, or;

(b) Non-cash contributions necessary and reasonable for proper and efficient accomplishment of project objectives, the value of which must be established using the following guidelines:

1. Rates for donated or volunteer services of any person must be consistent with their regular rate of pay, or the rate of pay of those paid for similar work at a similar level of experience in the labor market, including the value of fringe benefits.

2. The value of donated expendable property such as office supplies or workshop supplies must not exceed the fair market value of the property.

3. The value of donated real property must not exceed the fair market value of the property.

4. Donated space must be valued at fair rental value of comparable space and facilities in a privately-owned building in the same locale.

5. The value of loaned equipment can not exceed its fair rental value.

6. In-kind travel expense must be valued at the approved State rate as specified in Section 112.061, F.S.

Specific Authority 570.957 FS. Law Implemented 570.957 FS. History–New________.

5F-14.003 Grant Proposals; Criteria; Ranking; Award.

(1) REQUEST FOR GRANT PROPOSALS.

(a) The department shall issue a request for grant proposals (“RFGP”). The RFGP shall include a copy of the grant application form, instructions for submission of the grant application, and contact information for the department.

(b) The RFGP shall be issued by advertisement in the Florida Administrative Weekly, download at the department’s internet site at http://www.floridafarmtofuel.com, and requests for hard copies can be made by calling the department’s purchasing office at (850)488-7552.

(2) QUALIFIED APPLICANTS. Qualified applicants are those applicants identified in Section 570.957(2)(a), F.S.

(3) APPLICATIONS. Applications for the Farm to Fuel Grants Program shall be submitted to the Department of Agriculture and Consumer Services, ATTN: Farm to Fuel Grants Program, 3125 Conner Boulevard, Suite E, MS-C17, Tallahassee, FL 32399-1650 as follows:

(a) Eight copies of the application shall be submitted in hard copy format, using form number DACS-03102, Florida Farm to Fuel Grants Program Application, which is herein adopted and incorporated by reference. The form is listed by form number, and by the subject title and effective date. A copy of the form may be obtained by writing to: Department of Agriculture and Consumer Services, ATTN: Farm to Fuel Grants Program, 3125 Conner Boulevard, Suite E, MS-C17, Tallahassee, FL 32399-1650 or by accessing the internet at http://www.floridafarmtofuel.com. One copy shall be submitted in electronic format on compact disc at the same time as the hard copies. Acceptable formats for electronic versions are Microsoft Word for Windows versions 6.0 or higher; and Rich Text Format. Acceptable formats for electronic versions of the signed commitment letters required by form number DACS-03102, from third parties are Adobe PDF; Microsoft Word for Windows versions 6.0 or higher; and Rich Text Format.

(b) Applications must be received by the department no later than 5:00 p.m. on the date specified by the department in the RFGP.

(c) The application filing deadline shall be extended by the department when the department determines specifically for this grant program that extenuating circumstances exist, such as a hurricane or other natural disaster. Any deadline extension shall apply for all applicants. The department shall publish notice of the deadline extension on the department’s web site.

(d) A total of $25 million in grant money shall be disbursed for projects classified into two categories as follows:

1. A total of $3 million in grant money shall be awarded for projects classified by applicants as Research and Development or Demonstration. Under this category, the minimum allowable amount for an application to be eligible for consideration for an award shall be $100 thousand and the maximum allowable amount shall be $500 thousand.

2. A total of $22 million in grant money shall be awarded for projects classified by applicants as Commercialization. Under this category, the minimum allowable amount for an application to be eligible for consideration for an award shall be $250 thousand and the maximum allowable amount shall be $7 million.

(e) Completeness. Any application which does not include all required information shall be determined incomplete and ineligible for the award of the grant sought. The department shall notify the applicant of the determination of ineligibility.

(f) An applicant is not eligible for award of a grant if the department determines that the applicant:

1. Has a pending civil, criminal or administrative action alleging that the applicant has committed violations of Florida Statutes or the rules promulgated thereunder; or,

2. Has not satisfied a fine, penalty or other judgment arising out of any civil, criminal or administrative action brought by any governmental agency based upon violation of Florida Statutes or the rules promulgated thereunder.

(4) ELIGIBILITY. In order to be eligible for consideration, the following eligibility requirements must be met:

(a) For matching funds, the minimum allowable amount for an application to be eligible for consideration for award shall be 25% of the total project costs.

(b) Grant applications for Commercialization projects must be technically feasible. Technical Feasibility shall be determined through consultation and coordination with persons having expertise with renewable energy technologies. Technical Feasibility means the extent to which the proposed project is technically feasible based on pilot project demonstrations, laboratory testing, scientific modeling, proven commercial production or engineering or chemical theory that supports the proposal.

(5) MATCHING FUNDS.

(a) All matching funds and other in-kind contributions, including third party in-kind contributions, shall be verifiable from the applicant’s and/or its partner’s records, and shall not be included as contributions for any other state-assisted project or program.

(b) Expenses related to a proposed project incurred prior to the award announcement are not eligible as matching funds or in-kind contributions.

(6) RANKING.

(a) The criteria listed in this subsection shall apply to grants evaluated pursuant to Section 570.957, FS.

(b) The department shall use a point system to score grants. In scoring grants, points shall be awarded as follows:

Max Points Possible Max Points Possible

Criteria Commercialization R&D/Demonstration

1- Florida-Grown Biomass 30 30

2- Energy Efficiency 10 10

3- Cost Share Percentage 20 20

4- Expand Agribusiness 30 30

5- Market Potential 20 10

6- Economic Development 20 N/A

7. Innovative Technology 10 20

8. Project Progress and Timelines 10 N/A

Total Numerical Rating 150 120

1- Florida Grown Biomass: The project produces bioenergy from Florida grown crops or biomass.

Minimum (0 points): No bioenergy production potential from Florida grown biomass resources or this element of the evaluation criteria was not addressed.

Maximum (30 points): Project results in significant bioenergy production from Florida grown biomass resources.

2- Energy Efficiency: The degree to which a project demonstrates efficient use of energy and material resources.

Minimum (0 points): No consideration for energy efficiency or material resources or this element of the evaluation criteria was not addressed.

Maximum (10 points): Project incorporates energy efficient products, material resources and practices including process improvements that lead to source reduction, waste minimization, and on-site recycling.

3- Cost Share Percentage: The availability of matching funds or other in-kind contributions applied to the total project from the applicant.

All projects are to use the following scale:

2 points = 25% up to and including 32% of total project cost.

4 points = Greater than 32% up to and including 39% of total project cost.

6 points = Greater than 39% up to and including 46% of total project cost.

8 points = Greater than 46% up to and including 53% of total project cost.

10 points = Greater than 53% up to and including 60% of total project cost.

12 points = Greater than 60% up to and including 67% of total project cost.

14 points = Greater than 67% up to and including 74% of total project cost.

16 points = Greater than 74% up to and including 81% of total project cost.

18 points = Greater than 81% up to and including 88% of total project cost.

20 points = Greater than 88% of total project cost.

4- Expand Agribusiness: The project has a reasonable assurance of enhancing the value of agricultural products or will expand agribusiness in the state.

Minimum (0 points): No enhancement of value or expansion of agribusiness, or this element of the evaluation criteria was not addressed.

Maximum (30 points): Significant potential for enhancing the value of agricultural products and expanding agribusiness in Florida.

5- Market Potential: Preliminary market and feasibility research has been conducted by the applicant or others and shows there is a reasonable assurance of a potential market.

Minimum (0 points): No research conducted or this element of the evaluation criteria was not addressed.

Maximum (20 points for Commercialization projects and 10 points for Research and Development or Demonstration projects): Documented recent market and feasibility research papers published in reputable trade journals clearly indicating significant market potential for Florida.

6- Economic Development: The degree to which the project demonstrates an increase for in-state capital investment and economic development in metropolitan and rural areas, including the creation of jobs and the future development of a commercial market for bioenergy. (Not a criterion for Research and Development or Demonstration projects)

Minimum (0 points): No contribution in Florida or this element of the evaluation criteria was not addressed.

Maximum (20 points): Significant potential for economic development in Florida.

7- Innovative Technology: The project incorporates an innovative new technology or an innovative application of an existing technology.

Minimum (0 points): No innovative new technology or innovative application of existing technology or this element of the evaluation criteria was not addressed.

Maximum (10 points for Commercialization projects and 20 points for Research and Development or Demonstration projects): Project includes the use of an innovative new technology or an innovative application of existing technology.

8- Project Progress & Timelines: The degree to which the project demonstrates the capability to begin development expeditiously, establishes a readily identifiable ability to show steady progress, and meets project objectives and exhausts grant funds within the 2-year grant agreement timeframe. Project complexity shall be taken into consideration when evaluating this criterion. (Not a criterion for Research and Development or Demonstration projects).

Minimum (0 points): Project demonstrates no ability to expeditiously begin project and show distinct progress and/or project objectives will not be met and grant funds will not be exhausted within the 2-year grant agreement timeframe.

Maximum (10 points): Project demonstrates capacity to expeditiously initiate project, to achieve distinct periodic progress, and to accomplish project objectives and expend funds within grant agreement timeframe.

(b) The department shall establish a review group of no less than four (4) people, one (1) of which shall be from the Department of Environmental Protection. Each reviewer shall individually review grant applications, and score each application according to the point system provided in paragraph (6)(a), with the exception of Criterion #6 – Economic Development. With respect to Criterion #6 – Economic Development, this criterion shall be reviewed and scored by a representative from the Office of Tourism, Trade, and Economic Development.

(c) Scored point totals from all reviewers shall be scored and ranked as follows: On each eligible application, reviewers shall individually score each category by assigning a number within the range specified for that category. After all categories on each individual application have been scored, each reviewer shall total the category scores for that application. After all application categories have been scored independently by all reviewers, the totals shall be compiled and the applications, as a whole, ranked. For example, the top scored application by all reviewers shall be assigned a ranking number of 1, the second highest scored application shall be assigned a ranking number of 2, and the third highest scored application shall be assigned a ranking number of 3, and so on, until all eligible applications are ranked.

(7) AWARD.

(a) For each category, the department shall award grants based upon highest ranking and availability of funding, with 1 being the highest ranking. Grants shall be awarded to the top ranked application first, then to the second highest ranked application, and so on until the total amount of the fiscal appropriation in each state fiscal year is met. The maximum amount for a Commercialization project shall be $7 million and the maximum amount for a Research and Development or Demonstration project shall be $500 thousand.

(b) For each category, the department shall award up to the total amount requested in individual grant applications to the top ranked applicants up to the maximum amount allowed under paragraph (7)(a). If funds are not available to award the total amount requested by an applicant due to awards of grants to higher ranked applicants, the department may award partial grants to applicants up to the amount of the fiscal appropriation remaining for each category in each state fiscal year that funds are made available.

(c) In the instance of a ranking tie between two or more applicants, the applicant proposing the higher percentage of matching funds shall be ranked higher. In the instance of a ranking tie between two or more applicants, and those applicants propose the same percentage of matching funds, the higher ranking application shall be determined by lot, i.e. a coin toss.

(8) ADMINISTRATION.

(a) Grant funds must be awarded through a formal grant agreement executed between the department and the grant applicant. The grant agreement must contain all provisions required by Florida Statutes and Florida Administrative Code. If the agreement is not executed within 45 days of the announcement of the award, the grant shall not be awarded to that grant applicant and the department will award the grant amount to the next highest ranked applicant.

(b) Grant agreements are subject to the availability of an appropriation and shall be limited to no longer than two years in duration for Commercialization projects and three years in duration for Research and Development or Demonstration projects.

(c) Grant funds shall be distributed as reimbursements to recipients upon receipt of a formal invoice, supporting documentation, and upon department grant manager approval for compliance with all requirements of the grant agreement, this rule chapter, and the Florida Statutes.

(d) Invoices shall be submitted by grantees not more frequently than once per month, and not less frequently than once per quarter.

Specific Authority 570.957 FS. Law Implemented 570.957 FS. History–New ________.